Money & Banking

RBI slaps fine on Balancehero, Toyota Financial

Mumbai | Updated on October 10, 2019 Published on October 10, 2019

The Reserve Bank of India has imposed a monetary penalty of ₹12.88 lakh on Prepaid Payment Instrument (PPI) issuer Balancehero India Private and ₹5 lakh on Toyota Financial Services India. The central bank, in a statement, said in exercise of powers vested under Section 30 of the Payment and Settlement Systems Act, 2007, it has imposed the monetary penalty on Balancehero India Private Ltd for non-compliance of regulatory guidelines.

In a separate statement, the RBI said it imposed the monetary penalty on Toyota Financial Services India for non-compliance with directions issued by it on ‘monitoring of frauds in NBFCs’.

“The penalty has been imposed in exercise of powers vested in RBI under the provisions of the Reserve Bank of India Act, 1934 (the RBI Act).

“This action is based on the deficiencies in regulatory compliance and is not intended to pronounce upon the validity of any transaction or agreement entered into by the company with its customers,” the central bank said.

Referring to an inspection of Toyota Financial Services India it conducted during July-August 2018, the RBI said it was observed that the company had failed to comply with various directions issued by the central bank, inter alia, in respect of monitoring of frauds in NBFCs.

A notice was issued to the company advising it to show cause as to why monetary penalty should not be imposed for non-compliance with the aforesaid directions, it added. “After considering the entire facts of the case and the company’s reply, as also the submissions made during the personal hearing, the RBI came to the conclusion that the violations observed during the inspection were substantiated, which warranted imposition of monetary penalty on the company. Accordingly, a penalty of ₹5 lakh has been imposed on the company,” the statement said.

Published on October 10, 2019
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